Don’t Succumb to these Mistakes while Leasing an Office Space

Author: abhishekkumar | Posted: 27.05.2012

Most small business as well as start-ups don’t have the kind of money to purchase a space for their office outright. That’s why, most of them lease an office space, which is the right thing to do too. However, many have succumbed to the pressures of real estate agents and making mistakes in a hurry.

Choosing a space for your team is easier said than done. There are number of pitfalls you could fall in. Here are some mistakes you should better than to succumb to when leasing a space which would function as your office.

Leasing it when a virtual solution would have been better

In some cases, there is no actual need of a brick and mortar office. You could very well do with a virtual office solution, where you are home based but still have an office address of a premium location. There are service providers in cities such as New York which give you that kind of solution, with access to conference rooms on demand and other related services. If you have a small team and the nature of the job is such that it does not necessarily warrant physical presence, there is no need of leasing a space. Keeping it virtual would save you money, which you could then invest in other areas of business.

Choosing a location with hardly any connectivity

If you expect your employees to report to work on time, it is important that you choose a location for your office with good connectivity. Generally, central locations in the city work the best. However, central locations are costlier too. Thus, opting for something close by with good connectivity with public transport is important. Else, you will difficult to retain your staff, or find one in the first place.

Not negotiating on the terms of the lease

Contrary to what most people think, there are no rules when it comes to lease agreements. You can always negotiate with the owner on terms and conditions, which include but are not limited to the period of lease, the lock down period, exit policies in case you want to vacate the office before the term expires, sub-lease clause etc.

Going for the cheapest solution

This is a common mistake committed by rookies when it comes to leasing an office space. More often than not, it leads to losses than gains. It is important not to fall for the ‘cheapest’ marketing gimmick deployed by owners and real estate brokers. Rather, you should see the value addition part of the deal. An office space in an up and running corporate tower at a central location is much better than an office in a new building at a not-so-posh location, even when the former costs more dollars.

Not inspecting damages etc.

When you lease a space for an office, it is the responsibility of the owner to give you a space that is perfect in all regards. Thus, before you move in, check for chipped paint on the walls, damaged floor tiles or anything of that sort. If you are not satisfied with something, ask the owner to get it done for you.



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